Reconstitution of Partnership Firm Sample Contracts
Class-12 AccountancyReconstitution of Partnership Firm • October 8th, 2014
A partnership is formed by an agreement. Partnership is the result of an agreement and any change in the agreement or relations of the partners will result in the reconstitution of the partnership firm. it means new agreement takes place. Now this new agreement defines the relationship of the partners. In simple words, partnership is an agreement among the partners for sharing the profits of the firm carried on by all partners or any of them acting for all. Any change in the relations of partners will result in the reconstitution of the partnership firm. Existing agreement comes to an end and a new agreement takes place. Whenever there is change in agreement, the business will continue but the relationship among the partners changes. The firm is therefore, said to be reconstituted when :